Regulators are weighing new rules that would require overseas stablecoins to establish a local presence to operate in the domestic market. The initiative targets widely used coins such as USDT and USDC, with distribution hinging on a licensed local entity or branch. The aim is to close oversight gaps and bolster consumer protection in the rapidly evolving stablecoin sector.
Proponents say the policy could increase transparency and regulatory alignment for foreign issuers. Critics warn it may reduce liquidity and complicate cross-border settlement, potentially affecting market participation. The policy’s fate will depend on legislative debate, regulator feedback, and issuer readiness.
Industry associations are preparing compliance roadmaps and issuer guidance in response. Market watchers will monitor how authorities balance innovation with financial stability as the rules take shape.
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